Over the last couple of years, the support for systematic investment planning (SIP) has become louder with even mutual funds going all out to increase the investor base under this concept. In fact, figures of 50 lakh accounts within the next couple of years are being talked about in the mutual fund industry circles. With the average SIP value in India pegged at Rs 2,500, the corpus at stake is mind boggling.
Interestingly, the stock market is the perfect place for the success of SIP as the volatility is an integral part of the domestic markets. In the last few trading sessions, a day's trading has been through a wild range of 100-200 points and has been a trader's paradise. Even though the indices on the whole are moving in narrow range, the volatility on an hourly basis has been very sharp. That makes the task more challenging for an individual investor who can find it difficult to time the markets. Hence, individual investors are being increasingly pushed towards SIPs in recent times.
Source: http://economictimes.indiatimes.com
Ravi Jhawar
Summer Intern-Technical Analyst
DENIP Consultants Pvt. Ltd.
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